CHICAGO URBAN DAILY
CHICAGO (CHICAGO URBAN DAILY)— The governor has said it before, and he said it again Thursday: no to the head tax.
Gov. JB Pritzker reiterated his opposition to Mayor Brandon Johnson’s per-employee corporate tax, a centerpiece of the mayor’s $17.6 billion budget plan for 2027. Pritzker spoke after an unrelated news conference in West Englewood, less than a week before he faces voters for a potentially historic third term.
“I do not think that is a great way to provide revenue for the city, and here’s why: it sends a signal. It’s just the most direct signal to employers: don’t hire more people,” Pritzker said.
Johnson is proposing the tax for a second straight year. This version would charge companies with at least 125 workers $25 per employee per month — but with a twist meant to win over skeptics: companies would get a tax credit if the jobs are in economically disadvantaged areas, under a city formula that mostly covers the South, Southwest and West sides.
The mayor’s office pushed back Thursday. Spokesperson Griffin Krueger said the credit “is designed to incentivize job growth and economic development in socioeconomically disadvantaged communities,” and argued that state law “severely limits the City’s ability to levy increased taxes on corporations.”
The politics are brutal for the mayor. Last year’s version — a $21-per-employee fee — was shot down by aldermen, with Pritzker then calling himself “absolutely, four-square opposed.” This time, 29 aldermen signed a letter ahead of the budget reveal calling for no head tax. Johnson needs 26 votes to pass a budget.
A governor up for reelection, a mayor facing his own tough reelection fight, and a City Council that has already shown it will write its own budget. The head tax is back — and so is the wall in front of it.
Stay tuned to Chicago Urban Daily as the budget fight moves through Council.
Reported by Chicago Urban Daily News. Visit chicagourbandailynews.com for updates.
